Games Workshop Group PLC (LSE:GAW) shares fell 5.5% to 19,100p as Warhammer maker reported record annual sales and profit, and news on its Amazon partnership, but saw dividend payments .
Revenue increased 6.8% to £659.7 million in the 52 weeks to 31 May, from £617.5 million a year earlier. Pre-tax profit rose 4.9% to a record £275.7 million, while earnings per share increased to 624p from 594.9p.
The core miniatures business remained the main source of growth, with revenue rising 10.9% to £626.8 million and operating profit climbing 15.7% to £245.1 million.
However, licensing revenue dropped 37% to £32.9 million from £52.5 million, while licensing operating profit fell to £29.9 million from £49.5 million. Most of Games Workshop's licensing income is generated by video game sales.
The weaker contribution from licensing limited growth in overall operating profit, which increased 5.2% to £275 million.
Games Workshop declared a dividend of £1.40 a share, taking payouts announced so far in the 2027 financial year to £2.30, up from £1.40 at the same stage last year.
Chief executive Kevin Rountree said: "Games Workshop and the Warhammer hobby are in great shape." He added that record group revenue and pre-tax profit reflected "another good performance from the core business", but offered no detailed financial guidance for the new year.
As for the Warhammer 40,000 film and TV partnership with Amazon, Henry Cavill remains involved, while United Artists and horror director Mike Flanagan have joined the project and were said to be providing "pace and quality". Initial outlines have been completed, with Flanagan expected to begin work on the script shortly.
In animation, work has begun on an Amazon animated Warhammer 40,000 series.
Analysts at Jefferies said pre-tax profit beat the company's May guidance by 4%, with core operating profit increasing 17% at constant currencies despite the licensing headwind from Space Marine 2.
The broker saw "little in here not to like", highlighting improved margins, 12% growth in trade accounts and increases in MyWarhammer customers and Warhammer+ subscribers.
